Golden Matrix Group acquires remainder of RKings

Golden Matrix has acquired the remaining 20 per cent of the prize draws brand.

UK.- The online gaming developer Golden Matrix Group has announced that it has purchased the remaining 20 per cent of UK-based RKings. It had already acquired a majority stake in the prize draws brand a year ago.

Golden Matrix said that RKings contributed $5.5m to its $8.6m in revenue in Q1 and 60 per cent of its $8.5m revenue in Q2. The latest purchase was made with 165,444 restricted shares of common stock payable to Rkings’ two former owners.

Golden Matrix chief executive Brian Goodman said: “Obviously, we are pleased to now have this exciting and successful B2C business as a wholly owned entity; it is highly scalable and expected to grow quickly in multiple regulated jurisdictions.

“In addition to Great Britain, we expect RKing’’ tournament platform to be popular and well-received by participants in Mexico, where it is already permitted to operate; and we believe it can expand into other Latin American markets over the next couple years.”

Golden Matrix has recently launched GMGI Assets, a complementary business intended to boost the group’s revenue stream and profit from RKing.

In some instances, the tournament winner of an expensive automobile may choose to take a predetermined cash option in lieu of the car. When this occurs, GMGI Assets will take possession of the car and resell it,” Goodman said.

“Each transaction has a built-in positive margin, and we expect this business to make significant contributions to GMGI’s overall financial results as the number of auto tournament offerings continues to grow in Great Britain, as well as additional jurisdictions in the future.”

In January, the Gambling Commission clarified its position regarding the regulatory oversight of free draws and prize competitions as the result of an increase in the number of enquiries from the public. The regulator clarified that such competitions are not regulated under Britain’s 2005 Gambling Act, and as such it does not provide oversight. 

The Gambling Commission warned the public that companies behind such draws and competitions “may not be subject to the same oversight as regulated providers of gambling products and may not offer the same level of consumer protection against gambling-related harm”.